FROM CELL SITES TO RIFLE SIGHTS—After playing a strategic role in bankrupting Goodman Networks, once AT&T’s go-to wireless contractor, the company’s former CEO James Frinzi, 51, who is alleged to have embezzled and committed fraud, has embarked on a new career path as an arms dealer. This allows him to import and sell guns and ammunition internationally and manufacture weapons. The tall, tattooed lobbyist spends much of his time in Dubai.
James Frinzi’s journey through the business world, from lobbying for the defense minister of Indonesia and officials in Qatar, has been a rollercoaster of highs and lows, marked by his rapid ascent as CEO of Goodman Networks, allegations of fraud, embezzlement, and corporate misconduct, and a dramatic downfall that stripped him of his ill-gained assets and pushed him to explore ventures far beyond the telecom industry. His latest pivot? Weapons.
According to the Texas Observer, his newest venture is international arms dealing. Its investigative reporter, Justin Miller, has surgically dissected Frinzi’s illicit travails and his association with the Goodman brothers, Texas Attorney General Ken Paxton, and his wife, state Senator Angela Paxton.
In June 2023, Frinzi established World Conquest LLC, obtained a federal firearms license, and began operating under World Conquest Armory. Both companies operate out of a single-family home in Dripping Springs, Texas, that Frinzi does not own. The mailing address in Austin, Texas, is the same location that Frinzi used for MBG Holdings Inc., of which Senator Paxton had been a director.
On July 13, 2023, Frinzi resigned as CEO of MBG. The company press release said his “resignation as the Chief Executive Officer was not the result of any disagreement with the Company on any matter relating to the Company’s operations, policies or practices.” However, Frinzi informed Miller he started the arms business because he was “ousted” by MBG and needed a new job.
The Rise:
Frinzi first made his name as a well-connected lobbyist in the telecom industry, utilizing his deep political networks to represent various clients. He eventually became a key player for the Goodman family, known for their extensive telecom businesses in Texas. By 2010, Frinzi became an executive and chief lobbyist for Goodman Networks Inc., a prominent contractor for AT&T based in Plano, Texas. His role was crucial during the company’s peak when it generated over a billion dollars in revenue.
The Paxton Connection:
After becoming CEO of Goodman Networks, Frinzi rebranded the company to Multiband Global, aiming to leverage the 5G revolution. In January 2022, he acquired a dormant public shell company, renaming it MBG Holdings Inc. One of his first moves was to appoint Senator Paxton to the board of directors, touting her political and legislative experience despite her limited business background. Senator Paxton served on the board for about 14 months before resigning in March 2023. During this time, she received a quarterly stipend, and Frinzi donated $85,000 to Ken Paxton’s campaign.
Frinzi frequently boasted of his connections to the Paxtons, with a former business associate stating, “He loved to talk about his buddy Ken.” In 2022, the Paxtons accompanied Frinzi on a trip to Kosovo to promote Multiband Global and discuss 5G technology needs in the region. The trip was part of Multiband Global’s strategy to establish a foothold in Eastern Europe.
The Allegations:
Frinzi’s ties to the Paxtons and the company’s collapse raised questions about their involvement in his business dealings. Court filings and a civil Racketeer Influenced and Corrupt Organizations (RICO) lawsuit filed by FedEx alleged that Frinzi, along with James Goodman, orchestrated a “protracted and multi-faceted scheme to defraud” creditors, including FedEx, through fraudulent transactions. While Senator Paxton is not directly accused of wrongdoing, her involvement with Multiband Global during a period of alleged mismanagement and her resignation from the board shortly before the company’s financial troubles became public brought scrutiny.
The Paxtons have declined to address the extent of their involvement with Multiband Global. The Texas Observer reported that Senator Paxton’s board position and their European business trip with Frinzi were largely unknown to the public, highlighting Texas’ notoriously loose ethics laws that allow politicians to mix public service with personal business interests.
The Fall:
However, the fortunes of Goodman Networks began to decline in the following decade. The company faced financial troubles, leading to a series of layoffs and an eventual spiral into insolvency. In 2016, Goodman Networks’s key executives were leaving. By 2021, Goodman Networks was on the verge of bankruptcy, with $20 million in bonds coming due. James Goodman, the co-founder, appointed Frinzi as CEO to navigate the company through these turbulent waters. However, their efforts to stabilize the company failed, resulting in contentious bankruptcy proceedings. Allegations of fraud and corporate misconduct surrounded Frinzi and Goodman, leading to federal lawsuits accusing them of diverting more than $80 million in cash and assets to other entities they controlled. Last month, the bankruptcy trustee alleged that there was a complex fraud scheme.
